How Capitalism Came About

History of CapitalismCapitalism was created as a means of trade. This new free trade was only used from small town to small town and not as a competition. Each little town had its own specialty or what it could produce. Each town would get an identity and then trade began to expand from town to town, to county to county, to state to state, and eventually country to country. The earliest forms of capitalism we see in history is during the middle ages. The best early look alike to capitalism was in 14th century Florence. It had banking families who were making transactions all across Europe. Early capitalism could be anywhere people operated economically with freedom such as small villages, Native American tribes, or in a big city.~ReedAt the start of the 1800's a Scottish economist by the name of Adam Smith stated that personal and economic wealth would increase extremely if citizens were allowed to freely purchase and sell according to their personal interest, without the influence of the government.To make his ideas stand out, Smith elaborated upon an idea of an assembly line in which a company could divide a task and triple its production rate. This thought of an assembly line industry was over A century ahead of its time. At the start of the 1900's America started to fit like a puzzle piece in to Smith's theories. A new called the Industrial Revolution was born.

The Importance of Capitalism

The Importance of Capitalism
Since the fall of feudalism a laissez-faire economy or capitalism has promoted freedom and economic growth. It differs from other economic systems because of its little government interaction and ability to make money. Experts say that things like mercantilism and capitalism are single-handedly responsible for the discovery of the new world and the development of the world economy. Capitalism is important because it allows the citizens to exercise the right to buy and sell what they want in that way they can and often do shape nations.
”Capitalism has socialized production. It has brought thousands of people together in the factory and involved them in new social relationships”C. L. R. JamesAfter the industrial revolution, when thing where made in mass excess and were readily available to the middle class the law of supply and demand came into being. This law is the back bone of capitalism. even in the early days when trade was based off key products such as tea, spices, and cotton the need for these products dictated the sale; When the products were no longer “hot commodities” traders and merchants moved on to different things. In that respect capitalism is freedom live the way you want. “This is a system for the go-getters, the takers, and the trail blazers. If that’s just not you than neither is capitalism” ~ Unknown

The Benifits of Capitalism

The Benefits of Capitalism
Science and technology play a big role in areas with capitalistic economies. A well-functioning capitalist economy is key to the area’s success. The continuous growth helps improve the inequalities, because of the dependence on worker productivity; technology is improved thus increasing the amount of work completed. When a large amount of capital is available to the people, or government they can use it for investments in research and development. With the money for research, scholars or other workers have the chance to make scientific discoveries and technological innovations. Though it doesn’t always play out well, it gives the area a chance to improve itself and the areas around, possibly even the world.
Capitalism also protects property rights and has been argued to be grounded in human rights. But because of the inequality that comes with capitalism, productivity is stimulated. Some Scientists go so far as to argue that an example of democratic capitalism is in fact an organization of science. In science capitalism is treated equally and everyone can use the knowledge and share it, the work is split up between everyone and there is no leech so to speak. “Historically states, not private corporations, have been required to pioneer public water systems, nuclear energy, major advances in airplane propulsion and design, cancer research, space exploration, the Internet, and decoding of the human genome.” Most of the time it is the public people, tax payers, and hard workers that end up supporting these kinds of projects, in hope that this research can help benefits the community or general public as a whole.
In the end, without capitalism most technology or our understanding of the world around us would be known or discovered. Capitalism and science and technology, are hand in hand. It is a never ending cycle, and without one part of that cycle that we take advantage of everyday, we probably wouldn’t have as high of productivity or high-tech gadgets.


Imagine you moved to a new school, and you have history class 1st period. The subject of the class is Communism, the teacher says that the class will be taught like a Communist society. She tells the entire class that at the end of the semester, they will receive the same grade, a C. The first week, there will be some students in the class who will want to learn the material anyway and they will continue to study and learn. The majority of the class will just listen but not actively participate, and some of the students will do nothing and not pay attention at all. As time goes on, fewer students will want to learn and more students will continue to slack off and not do much, some might even skip class, and still, everyone gets an equal grade of a C.
A Capitalist class however focuses on competition. For example, you get only the grade you earn and some students will get F’s, some will get A’s, some will get C’s.
These cover the ideas of equal distribution of wealth and the motivation for work. In the Communist system, the government divides the pie equally among the people. The problems are that this affects people’s motivation to work, and the more people you have, the smaller the piece of the pie a person will get.
Capitalism on the other hand focuses on competition. The idea is to grow the pie so that there is more pie available to those who are willing to work for it. The problem with Capitalism is that people want more pie, but don’t want to work for it. Instead, they want to cheat people out of their pieces of pie and then use the pieces of pie they have to bribe the government to help them steal more pie. This is a perversion of Capitalism and that is why government regulation has to step in to stop the bribery and to stop people from cheating others out of their pie. If you want more pie, you have to work for it.


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